In our previous blog, we experimented with Alpha - the intercept parameter of the Holt-Winters method - to see how the forecast gets affected as the weight changes. This week we are going to run similar tests with Beta, the trend parameter. Learn how you can use your recent sales trends to improve future forecasts.
What-if scenario planning is an excellent technique that allows a planner to ask questions on the future. Given a working model that represents a business, a planner can quickly ask the questions that represent the range of possibilities in the foreseeable future which can render the current plan obsolete.
Recently, I was visiting with a prospect in Pennsylvania and they lamented on the effect of the ongoing port shutdowns on the west coast. He went on to say how they have heard of a threat for a shutdown for many years and everyone had become accustomed to it.